FIS Upgraded To Buy At UBS, Shares Up 1%

Core Viewpoint - Fidelity National Information Services (FIS) shares have become more attractive following an upgrade from UBS, which raised the stock rating to Buy from Neutral with a price target of $82.00, despite a year-to-date decline of approximately 20% [1] Group 1: Stock Performance and Analyst Upgrade - UBS upgraded FIS shares to Buy from Neutral, setting a price target of $82.00 [1] - FIS shares have decreased around 20% year-to-date, but are now seen as offering a more favorable risk-reward profile [1] Group 2: Earnings and Financial Projections - Analysts forecast FY2026 EPS to exceed $6.25, indicating improved earnings visibility [1] - The company is expected to achieve stronger margin expansion and free cash flow conversion exceeding 90% [1] Group 3: Strategic Acquisitions and Synergies - The acquisition of TSYS credit issuer processing is projected to generate $150 million in EBITDA benefits within three years [2] - UBS anticipates total shareholder returns of 11–14%, including a dividend yield of approximately 2%, supported by M&A and share buybacks once leverage normalizes [2] Group 4: Future Outlook - Stable results in the second half of 2025, combined with TSYS integration in 2026, are expected to support higher valuation multiples and sustained EPS growth [2]